How Much Does a Great Clips Franchise Cost?

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2026 cost answer

How much does a Great Clips franchise cost?

A new U.S. Great Clips salon has an estimated initial investment of $187,800 to $419,900. That is the range disclosed by Great Clips, Inc. in the Franchise Agreement table in its Franchise Disclosure Document issued March 30, 2026. The table covers a single Franchise Agreement and the first salon developed under the Three Star Program Agreement; it does not turn the separate Master Development Agreement payment into an alternative all-in salon cost.

Estimated Initial Investment
$187,800–$419,900
2026 FDD Item 7, pp. 15–18, for the first U.S. Great Clips salon. The range includes the Initial Franchise Fee or Three Star Program Fee, Initial Advertising Contribution to the MDAF, premises and equipment costs, grand opening advertising, and $20,000–$60,000 of Additional Funds for the pre-opening period and first 3–6 months. It excludes an owner’s salary or draw.

The largest disclosed variable is Leasehold Improvements, including Labor, at $70,000 to $200,000. A Master Development Agreement requires a separate $14,000 to $46,000 at signing for development rights covering two to 10 salons and the first $6,000 Initial Franchise Fee; the Development Fee is expressly in addition to the first salon’s Item 7 investment.

Data basis. Legal franchisor: Great Clips, Inc., a Minnesota corporation with no predecessors or affiliates disclosed in Item 1. Document: 2026 Great Clips, Inc. Franchise Disclosure Document, issued March 30, 2026. Cost sections reviewed: Items 5, 6 and 7, with cost-relevant provisions in Items 8, 10, 11 and 17. Applicable paths: Franchise Agreement, Three Star Program Agreement and Master Development Agreement. Information checked July 15, 2026. The current FDD citations are plain text because a matching public FDD was not available on an official franchise-controlled domain when checked; supplemental facts link to official Great Clips U.S. franchise information and the Great Clips corporate overview.

Key cost figures
$20,000 Initial Franchise Fee First single Franchise Agreement; paid at signing.
$20,000–$60,000 Additional Funds Pre-opening and first 3–6 months; owner pay excluded.
6% Continuing Franchise Fee Gross Sales, collected biweekly.
5% Ad Fund Contribution Gross Sales, collected biweekly.
$100,000 Minimum Liquid Assets Official site; $250,000 in high-cost markets.
$500,000 Minimum Net Worth Official site; $1,000,000 in high-cost markets.
Item 7 investment

What is included in the $187,800–$419,900 range?

The 2026 Item 7 total combines contract payments, premises work, required fixtures and inventory, launch advertising, insurance, training travel and initial operating capital. The official total should be used as disclosed rather than recreated from selected categories, because its low end uses the $20,000 single-salon Initial Franchise Fee while its high end uses the $35,000 Three Star Program Fee.

Contract and pre-opening payments

These payments arise before or around site commitment, training and opening. Timing changes for a subsequent Franchise Agreement, and the lease-related fees apply only when the stated lease circumstances occur.

Item 7 category Amount When paid Key qualification
Initial Franchise Fee $20,000 or $35,000 At signing; later agreements split $10,000 at signing and $10,000 at equipment order $35,000 is the Three Star Program Fee covering three Franchise Agreements, subject to program conditions
Initial Advertising Contribution to the MDAF $5,000 At first agreement signing; later agreements at equipment order One-time, non-refundable contribution; Three Star treatment depends on program conditions
Travel and Expenses While Training $1,500–$2,500 per participant As incurred during training Paid to airlines, hotels and restaurants; wages and other staff expenses can also apply
Architecture Fees $100–$3,800 As incurred Higher end assumes revisions, engineered drawings or LEED-related work
Rent and Security Deposits $1,000–$10,000 At lease signing or utility-account start Rent is generally non-refundable; deposits depend on the contract
Insurance $1,500–$3,000 Before opening Initial property and public-liability premium only
Lease Liability Fee and Lease Review Fee $0–$4,000 Upon lease or sublease assignment Includes a $1,500 liability fee when Great Clips remains liable and a $2,200–$2,500 review fee

Source: 2026 Great Clips, Inc. FDD, Items 5 and 7, pp. 9–18.

Premises, equipment, launch and working capital

These categories account for most of the total. The premises assumption is generally a 900- to 1,200-square-foot salon in a shopping center delivered in a “vanilla shell” condition, not a guaranteed local construction quote.

Item 7 category Amount When paid Cost scope
Leasehold Improvements, including Labor $70,000–$200,000 When construction starts Condition of the premises, plumbing, HVAC, electrical and local code work drive variation
Fixtures, Signage and Furnishings, including Salon Technology Hardware $40,000–$55,000 When ordered Purchased from Great Clips, designated suppliers or the landlord as applicable
Freight $4,000–$7,000 As incurred Freight carriers, suppliers and Great Clips
Sales Tax on Fixtures, Signage and Furnishings $0–$3,200 As incurred Varies by jurisdiction and taxable purchase
Opening Inventory and Supplies $4,700–$6,400 When ordered Required haircare products, tools and supplies from designated sources
Grand Opening Advertising $20,000–$25,000 As incurred First-salon plan; discounted pricing and extra opening staff are excluded
Additional Funds (3–6 Months) $20,000–$60,000 Before opening and as incurred Payroll, taxes, professional fees, rent, recruiting, repairs, supplies and other start-up items
Total Estimated Initial Investment $187,800–$419,900 Across the opening period Official 2026 Item 7 total for the applicable first-salon table

Source: 2026 Great Clips, Inc. FDD, Item 7, pp. 15–18. The official Great Clips investment page publishes the same U.S. total range and a condensed category summary.

FDD caveat

Additional Funds are already inside the Item 7 total. Adding another $20,000–$60,000 on top of $187,800–$419,900 would double-count working capital. The Additional Funds estimate covers the pre-opening period and first 3–6 months, but excludes an owner’s salary or draw and does not guarantee that no further start-up expense will arise.

Range drivers

Which categories create most of the investment uncertainty?

Leasehold Improvements create the widest disclosed spread, followed by Additional Funds. The Initial Franchise Fee line also spans $20,000 to $35,000, but that difference reflects the selected agreement path rather than a negotiable price within one contract.

The FDD does not publish separate Item 7 totals for shopping-center, freestanding, densely populated or other Non-Traditional Locations. It says Great Clips salons are ordinarily in or near shopping centers, while a conversion of an existing freestanding building or pre-existing facility may be allowed with consent. Conversion costs are described as too individually variable to predict and may exceed the cost of a newly built facility. Buying an existing salon can also change the total.

Required sourcing is a material Great Clips cost condition

Great Clips, Inc. says required purchases from it or designated suppliers account for approximately 90%–95% of the goods and services bought when establishing a salon and approximately 80%–85% of ongoing purchases. Great Clips is currently the sole supplier for specified lobby, sales-area, station, flooring, graphics and signage items, while designated suppliers cover opening inventory and other required goods.

90%–95% Approximate share of establishment purchases from Great Clips or designated suppliers.
80%–85% Approximate share of ongoing purchases from Great Clips or designated suppliers.

Source: 2026 Great Clips, Inc. FDD, Item 8, pp. 19–21.

Payment timing

When is the money paid?

The capital is not due as one check. The 2026 FDD ties payments to agreement signing, site and lease events, construction, equipment orders, training and the first 3–6 months of operation.

Agreement signing

For a first single Franchise Agreement, pay the $20,000 Initial Franchise Fee and $5,000 Initial Advertising Contribution to the MDAF. A Three Star Program Agreement requires $35,000 plus $5,000 at signing. A Master Development Agreement requires $14,000–$46,000 at signing, depending on the two- to 10-salon commitment.

Training and planning

Pay $1,500–$2,500 per participant for travel and living expenses as incurred, plus $100–$3,800 of Architecture Fees as plans and required revisions are completed.

Lease and account commitments

Pay $1,000–$10,000 for rent and security deposits when the lease is signed or utility accounts begin. If Great Clips assigns or guarantees the lease while retaining liability, the Lease Liability Fee and Lease Review Fee can total up to $4,000.

Construction and equipment order

Leasehold Improvements are paid as construction starts; fixtures, signage, furnishings and Salon Technology Hardware are paid when ordered. For a subsequent Franchise Agreement, the second $10,000 Initial Franchise Fee installment and $5,000 MDAF contribution are due with the equipment order.

Opening and early operations

Opening Inventory and Supplies, freight, sales tax, Insurance and Grand Opening Advertising are paid before or around opening. Additional Funds support pre-opening costs and the first 3–6 months as payroll, rent, recruiting, repairs, professional fees and other start-up obligations arise.

Source: 2026 Great Clips, Inc. FDD, Items 5 and 7, pp. 9–18. The FTC’s consumer guide to buying a franchise explains the federal disclosure timing that precedes signing or payment.

Development paths

How do the single-salon, Three Star and Master Development payments differ?

The three entry payments purchase different contractual rights and should not be treated as interchangeable franchise-fee quotes. A single Franchise Agreement covers one salon; the Three Star Program Agreement is a 24-month lease-signing incentive tied to three Franchise Agreements; the Master Development Agreement grants a multi-salon development commitment in an Exclusive DMA.

Format difference

The $14,000–$46,000 Master Development Agreement amount is not the cost to open all committed salons. It is the Development Fee of $4,000 per committed salon plus the first $6,000 Initial Franchise Fee. The first salon still carries its own Item 7 investment, and each later salon requires a separate $6,000 Initial Franchise Fee when its Franchise Agreement is signed.

Three Star Program conditions The $35,000 Program Fee and $5,000 MDAF payment are non-refundable. Three fully executed leases are required within 24 months to preserve program benefits. A qualifying third agreement may convert for $15,000, consisting of a $10,000 Initial Franchise Fee and $5,000 MDAF contribution; other failed lease milestones can trigger the then-current fee and MDAF.
MDAF waiver under a Master Development Agreement Initial MDAF contributions for salons in the Exclusive DMA are waived only if the approved grand opening advertising plan is followed; otherwise the contribution becomes due upon request.
Deferral Program A $20,000 Initial Franchise Fee and $5,000 MDAF contribution may be deferred, not waived, for a qualifying additional salon near an existing salon. The deferred amount becomes payable after specified sale, relocation or closure events.
Expediter Program A qualifying franchisee may receive a rebate of up to $20,000 against actual third-party payments made to acquire a specified real-estate location for a new or relocated salon.
VetFran rebate Qualified honorably discharged U.S. veterans can receive a $5,000 Initial Franchise Fee rebate when the first salon opens. It applies only to the first salon and does not reduce construction, equipment, working capital or continuing fees. The official Great Clips franchise FAQ confirms the current program.
Ongoing fees

Which fees continue after the salon opens?

The main continuing payments are a 6% Continuing Franchise Fee and a 5% Continuing Advertising Contribution to the Ad Fund, both calculated on Gross Sales and collected biweekly. Gross Sales includes revenue from services, products and goods sold from or in connection with the salon, less sales taxes.

Continuing obligation Amount or basis Timing Interpretation
Continuing Franchise Fee 6% of Gross Sales Biweekly Automatic bank withdrawal; government taxes imposed on the fee can be passed through
Continuing Advertising Contribution to the Ad Fund 5% of Gross Sales Biweekly Separate from local advertising and Co-op dues
Incremental Local Advertising Likely minimum 1%–3% of Gross Sales As local activity requires Additional operating expense, not part of the 5% Ad Fund contribution
Training Fee Currently $200 per year per salon April 1 annually May change, capped at the greater of $200 or 1% of annual Gross Sales
Local Co-op Dues System average $100 per month As determined by the Co-op Actual dues and assessments vary by local cooperative
Recruiting Technology Fee Currently $750 per year per salon $375 semi-annually May change, capped at the greater of $750 or 1% of annual Gross Sales
Styleware Software Suite License Currently $250 per month per salon Monthly automatic withdrawal After-hours telephone support is $25 per call
Salon Ongoing Maintenance Costs $3,000–$9,000 annually As incurred Painting, carpeting, graphics, fixture repair and periodic upkeep

Source: 2026 Great Clips, Inc. FDD, Item 6, pp. 12–15, and Item 11, pp. 32–34. The official franchise FAQ separately confirms the $20,000 franchise fee and 6% royalty.

Required payment processing adds a one-time $15 setup fee per salon, $0.016 per electronic transaction and $5 per month for the Merchant Protection Program. Warranty and support charges for the required payment terminal can also apply, but the 2026 FDD does not state a fixed amount. Hardware, network, managed-services, license and warranty costs may change when Great Clips changes required technology.

Later-life costs

Which costs arise only after a trigger, transfer or remodel?

Item 6 includes charges that are not ordinary opening costs but can become material over a 10-year Franchise Agreement term. The largest disclosed later-life range is $20,000 to $80,000 for Salon Upgrades every seven to 10 years.

Renewal and development renewal The current Renewal Fee is $1,750 per salon at expiration of the 10-year term. If Great Clips permits renewal of an incomplete Master Development Agreement, the current MDA Renewal Fee is $1,000 for each salon not yet opened, in addition to applicable development and franchise fees.
Assignment or transfer The current Assignment Fee is $1,500 per salon when consent is requested. The assignee can also become responsible for unpaid Initial Franchise Fee or MDAF amounts, training, guarantees and other conditions under Item 17.
Remodel, maintenance and relocation Salon Upgrades are estimated at $20,000–$80,000 every seven to 10 years; Ongoing Maintenance is $3,000–$9,000 annually; remodel or relocation Architecture Fees are $100–$3,800 at the start of the project.
Meetings and additional training Franchisee Program Fees range from $345 to $550 per meeting or event. Registration, wages, travel and other out-of-pocket costs can also apply. Great Clips may establish a reasonable fee for mandatory retraining at renewal.
Lease and real-estate events Out-of-pocket lease-assignment, renewal and amendment expenses are reimbursable as incurred. A real-estate commission may be charged in rare cases. The $1,500 Lease Liability Fee can apply when Great Clips remains liable under the lease.
Insurance default If required coverage is not maintained and Great Clips buys it, reimbursement is estimated at $1,500–$3,000 per year for property and public-liability coverage; workers’ compensation and other coverage are not estimated.
Sister Store Review Appeal An executive-level appeal concerning potential sales-transfer impact costs $500–$1,000 and may be refunded if the outcome is decided in the franchisee’s favor.
Late payment, audit and collection Late charges accrue at 14% per year or the highest lawful rate. Audit and professional costs become payable if an inspection finds a reporting discrepancy of at least 5% or an underpayment of at least 2%. Collection costs, attorneys’ fees, overdraft and insufficient-funds charges can also be recovered.
Taxes, business debts and liens If Great Clips pays an unpaid tax, business debt or lien connected with the salon, the amount can be billed back to the franchisee.

Source: 2026 Great Clips, Inc. FDD, Item 6, pp. 12–15, and Item 17, pp. 46–50.

Capital qualifications

Are liquid capital and net worth part of the opening-cost range?

No. Great Clips’ financial qualifications are screening thresholds, not additional Item 7 line items and not proof that the disclosed investment can be funded entirely with those amounts. As checked July 15, 2026, the official franchise site states minimum net worth of $500,000 and liquid assets of $100,000, with higher thresholds of $1,000,000 net worth and $250,000 liquid assets in high-cost markets. It also lists a minimum credit score of 675.

Estimated Initial Investment
$187,800–$419,900 in the 2026 FDD for the applicable first-salon table. This is the estimated amount needed to establish and begin operating the salon.
Liquid Assets
At least $100,000, or $250,000 in high-cost markets, under the current official website qualification. Liquid assets are not the same as total net worth.
Net Worth
At least $500,000, or $1,000,000 in high-cost markets. Net worth is assets minus liabilities and is not equivalent to cash available for construction or working capital.
Personal Guarantee
Each shareholder with any ownership interest in the operating entity must personally guarantee complete and timely performance, including payment obligations under the Franchise Agreement.

The official financial thresholds can vary by market. Great Clips also requires a new franchisee to live in an open geographic market, so the relevant capital screen should be confirmed against the current financial requirements and available U.S. territories for the intended market.

Financing

Does Great Clips finance the franchise cost?

Great Clips does not generally provide direct or indirect financing for the salon purchase or Item 7 fees. Item 10 says Great Clips, its agents and affiliates do not offer financing arrangements, although the company may guarantee a loan in limited circumstances, may charge a fee for that guarantee and may guarantee a lease subject to the disclosed Lease Liability Fee and Lease Review Fee.

The official website says Great Clips has relationships with third-party lenders and can connect prospects with outside funding options. That statement does not change the FDD position: a third-party relationship is not franchisor financing and does not guarantee approval, rate, leverage or closing. Item 10 also says Great Clips is listed on the Franchise Registry, which can streamline lender access to franchisor information, but is not an SBA endorsement or loan guarantee.

Payment timing

Financing cost is not built into the Item 7 range. Item 7 permits third-party financing of Leasehold Improvements, fixtures, signage and furnishings at the franchisee’s discretion, but interest, lender fees, collateral requirements and any required guarantee are additional and borrower-specific.

Buyer check

What does the official range leave unresolved?

The 2026 disclosure gives a usable national range, but it cannot resolve the actual lease, local build-out, staffing, financing and format conditions for a specific site. A buyer should reconcile the current contracts and local bids to the official categories without replacing the FDD total with an unsupported “typical” budget.

Confirm the agreement path. Determine whether the transaction is a single Franchise Agreement, Three Star Program Agreement, Master Development Agreement, purchase of an existing salon or approved conversion. Do not blend their fees.
Price the actual premises. Obtain site-specific estimates for Leasehold Improvements, utilities, rent, deposits, permits, code work and landlord contributions. The FDD’s vanilla-shell assumption may not match the delivered space.
Separate owner support from Additional Funds. The $20,000–$60,000 Additional Funds range excludes an owner’s salary or draw, and the FDD advises providing separately for personal expenses during the start-up phase.
Budget opening promotion exclusions. The $20,000–$25,000 Grand Opening Advertising estimate excludes the cost of discounted pricing and additional opening staff; local signage restrictions can also raise costs.
Complete the insurance scope. The Item 7 Insurance range covers the initial property and public-liability premium, not workers’ compensation or every optional or state-required coverage.
Model recurring and later-life obligations separately. Keep the 6% Continuing Franchise Fee, 5% Ad Fund contribution, local advertising, technology, Co-op, maintenance, upgrade, renewal and transfer costs outside the pre-opening total unless an initial payment is expressly included in Item 7.
Use the latest delivered FDD and state addenda. Verify that the March 30, 2026 disclosures, current fee schedules and any state-specific deferral or escrow provisions still govern before signing or paying.

The cost decision in one sentence: plan around the official $187,800–$419,900 first-salon range, treat the $70,000–$200,000 Leasehold Improvements line as the primary site-sensitive variable, keep the $20,000–$60,000 Additional Funds inside that total, and separately test whether the selected development agreement, financial qualifications, continuing fees and later remodel obligations fit the available capital.